In the current economic climate of stagnant house prices and ever increasing rents, the buy to let market is a great place to invest.
However, getting a good return on your investment means getting the right house in the first place. Owning a property that sits empty for months because it is in the wrong location or an undesirable area will see the landlord picking up the tab for bills, insurance, council tax, mortgage repayments and more.
As well as selecting the right house in the right area, landlords need to be on the lookout for great value properties too. The BMV market is in full swing right now, thanks in part to the high numbers of home repossessions and bankruptcy cases that have passed through the courts over the last decade. But finding a real BMV property can be tough, and requires a good amount of homework on the investor’s part if they are going to secure an amazing deal.
Here are some top tips from the experts for finding and securing a true BMV property, perfect for your buy to let investment.
- Check out the area first. If it’s a bad area which even the council are having trouble renting properties in, then there is a good reason why the house is being sold off so cheaply.
- Research property prices in the area, using sites like Rightmove and Zoopla to compare other house prices in the neighbourhood and establish whether your property is actually being advertised at below market value. You can also contact the land registry to find out what other houses in that street have sold for recently.
- While you are researching all this, check out the prices locally for rent too. Even if you know a three bed usually rents for a certain price in your town, the actual prices you will achieve can vary from one street to the next.
- Go a step further in checking out the rental market if you like, by placing an ad in the local classifieds to measure the response you get.
- Find out who is available locally to help you manage the property. A good local letting agent will be a Godsend to you, especially if you live out of the area. Get recommendations and meet them in person to get a feel for their customer service and ability.
- Talk to other letting agents in the area about the property you are thinking of buying. Don’t rely on the word of the selling agent as they have an interest in you going ahead with the sale.
- Have a full survey done on the property by someone who knows the buy to let market well. You don’t want to be spending your profits on rectifying defects, making good or fixing dodgy DIY around the place.
If everything checks out, then you might be one of the lucky ones who has found a true BMV property. These houses don’t hang around for long, so get your finances in place and snap it up quick! Even if you find out that the house is not really being sold at below market value, if it still offers a good return on your investment then it may be worth going for.